Extreme Networks Inc (EXTR)

Gross profit margin

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Gross profit (ttm)	US$ in thousands	709,127	634,153	575,334	583,581	627,010	727,315	802,663	800,948	754,720	694,492	663,912	641,043	629,938	636,847	624,302	605,708	585,123	544,613	507,135	515,614
Revenue (ttm)	US$ in thousands	1,140,067	1,089,717	1,016,248	1,033,270	1,117,203	1,224,460	1,345,931	1,367,902	1,312,454	1,226,740	1,179,741	1,142,326	1,112,321	1,112,213	1,080,105	1,041,300	1,009,418	946,852	902,971	928,315
Gross profit margin		62.20%	58.19%	56.61%	56.48%	56.12%	59.40%	59.64%	58.55%	57.50%	56.61%	56.28%	56.12%	56.63%	57.26%	57.80%	58.17%	57.97%	57.52%	56.16%	55.54%

June 30, 2025 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $709,127K ÷ $1,140,067K
= 62.20%

The gross profit margin of Extreme Networks Inc. demonstrates a generally stable profitability trend over the analyzed period, reflecting the company's ability to efficiently manage cost of goods sold relative to revenue. Starting at 55.54% on September 30, 2020, the margin exhibits a gradual upward trajectory, reaching its peak at 62.20% on June 30, 2025. Throughout this timeframe, the gross profit margin fluctuates within a range, with notable increases observed from approximately mid-2021 onward.

Initially, the margin increased modestly from 55.54% in September 2020 to 58.17% by September 2021, indicating enhancements in gross profitability margins. This upward trend persisted through late 2021 and into 2022, with figures ranging from 57.80% to 56.12%, suggesting steady improvement. After some minor fluctuations, the gross profit margin continued to ascend, reaching 56.61% in March 2023 and further accelerating to 57.50% by June 2023, followed by a more pronounced increase to 58.55% in September 2023.

The most significant rise is observed between September 2023 and June 2025, where the margin climbs from 58.55% to an all-time high of 62.20%. This substantial increase may imply successful pricing strategies, cost management, or a favorable product mix during this period. The pattern indicates a consistent enhancement in gross profitability, reflecting the company's ability to generate higher gross profits relative to sales over time.

In conclusion, the gross profit margin trend of Extreme Networks Inc. suggests improving operational efficiency and profitability, with the margin steadily expanding over the periods observed, culminating in a significant increase in mid-2025.